Ways to Transfer a House to a Family Member

Transferring property ownership to a family member—whether as a gift, inheritance, or sale—requires following specific legal processes in South Africa. While it may seem straightforward, the transfer of property must comply with the Deeds Registries Act, tax regulations, and municipal requirements to ensure a legally valid transaction.

At Burger Huyser Attorneys, we specialise in property law and conveyancing, guiding families through the transfer process efficiently and professionally. 

There are several ways to transfer property ownership to a spouse, child, sibling, or other relatives:

1. Selling the Property

  • The easiest way to transfer ownership is through a sale agreement, even if the property is sold below market value.
  • The process follows a standard property sale, requiring a conveyancer to register the new ownership.
  • Transfer duty is payable unless the property value is below R1,100,000 (as per SARS regulations).

2. Gifting the Property (Donations)

  • Property can be donated to a family member, but this triggers donations tax of 20% on the value above R100,000.
  • A Deed of Donation must be drafted by a conveyancer.
  • The recipient (family member) is responsible for transfer costs and Deeds Office fees.

3. Inheritance (Estate Transfer)

  • If property is inherited through a will or intestate succession, ownership is transferred via the executor of the estate.
  • No transfer duty is payable, but there are legal and administrative costs involved.
  • If the deceased had a bond, it must be settled before the transfer can proceed.

The Legal Process for Transferring Ownership

Regardless of how the property is transferred, the legal steps remain similar:

Step 1: Drafting an Agreement

  • If selling or donating the property, a sale agreement or Deed of Donation must be drafted.

Step 2: Appointing a Conveyancer

  • A conveyancing attorney facilitates the legal transfer by preparing and lodging documents at the Deeds Office.

Step 3: Obtaining Clearance Certificates

  • The conveyancer ensures that all municipal rates, taxes, and levies are paid before the transfer.

Step 4: Paying Transfer Duty (If Applicable)

  • If applicable, the buyer (family member) must pay transfer duty to SARS before registration.

Step 5: Registration at the Deeds Office

  • The new title deed is registered in the family member’s name, finalizing the transfer.

Costs Involved in Transferring a House to a Family Member

Even when transferring property within a family, there are costs to consider:

✅ Conveyancing Fees: Paid to the conveyancer handling the legal process.
✅ Transfer Duty: If the property is valued over R1,100,000, SARS transfer duty applies.
✅ Donations Tax (If Gifted): 20% on the value above R100,000.
✅ Municipal Clearance Fees: Paid to obtain a clearance certificate for the property.
✅ Bond Cancellation Fees (If Bonded): If a home loan exists, the bond must be cancelled before transfer.

Transferring property ownership to a family member requires careful legal and financial planning. Whether you are selling, donating, or transferring through inheritance, it is essential to work with a conveyancer to ensure compliance with South African property laws.

At Burger Huyser Attorneys, we specialise in family property transfers, making the process efficient and stress-free. Need assistance? Contact us today for expert conveyancing services.

Contact Burger Huyser Attorneys, and book a consultation.

To speak to one of our experienced attorneys in South Africa for immediate assistance, contact us on the numbers below:

Randburg call 061 516 6878; Roodepoort call 061 516 0091; Sandton call 064 555 3358;  Pretoria call 064 548 4838;

Centurion call 061 516 7117; Alberton call 061 515 4699; Bedfordview call 061 536 3223

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE